Centene Corporation Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2017; Revises Earnings Guidance for the Year 2018
February 06, 2018 at 11:06 am
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Centene Corporation reported unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2017. For the quarter, total revenues were $12,806 million against $11,911 million a year ago. Earnings from operations were $181 million against $521 million a year ago. Earnings from continuing operations, before income tax expense were $168 million against $480 million a year ago. Net earnings attributable to Centene Corporation were $230 million against $261 million a year ago. Net earnings per diluted common share attributable to Centene Corporation were $1.30 against $1.49 a year ago. Adjusted Diluted EPS was $0.97 compared to $1.19 for the fourth quarter of 2016. Total cash flow provided by operations was $450 million. Adjusted net earnings from continuing operations were $173 million against $210 million a year ago.
For the year, total revenues were $48,382 million against $40,607 million a year ago. Earnings from operations were $1,199 million against $1,260 million a year ago. Earnings from continuing operations, before income tax expense were $1,134 million against $1,157 million a year ago. Net earnings attributable to Centene Corporation were $828 million against $562 million a year ago. Net earnings per diluted common share attributable to Centene Corporation were $4.69 against $3.43 a year ago. Net cash provided by operating activities was $1,489 million against $1,851 million a year ago. Capital expenditures were $422 million against $306 million a year ago. Adjusted Diluted EPS was $5.03 compared to $4.43 for the full year 2016. Adjusted net earnings from continuing operations were $889 million against $727 million a year ago.
The company revised earnings guidance for the year 2018. The company now expects total revenues of $60.6 million - $61.4 million compared to previous guidance of $60.0 million - $60.8 million; GAAP diluted EPS of $5.91 - $6.25 compared to previous guidance of $4.63 - $4.97; adjusted Diluted EPS of $6.95 - $7.35 compared to previous guidance of $5.47 - $5.87. Adjusted Diluted EPS excludes amortization of acquired intangible assets of $0.79 to $0.81 per diluted share and acquisition related expenses of $0.25 to $0.29 per diluted share. The company expects effective tax rate of 31.0% - 33.0%.
Centene Corporation specializes in health services. Revenues break down by activity as follows:
- development of health insurance programs (91%): primarily for children, pregnant women, blind and disabled persons;
- specialized services (9%): pharmaceutical services (claims processing, pharmacy network management, mail order sales, home delivery, analysis and clinical consulting services, etc.), health care services by education and empowerment (behavioral orientation programs and welfare, nursing advice, etc.), eye and dental care services, home care services, development of health care management solutions, etc.
Centene Corporation Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2017; Revises Earnings Guidance for the Year 2018